Sales mix

Categories:

Accounting

| Contributor:

Hoang Truong

Tags:

Business Process

Definition

The sales mix is a calculation that determines the proportion of each product of a company, compare to total sales. Maintaining an ideal sales mix can help a company to balance out its product portfolio’s variety, improve profit margin and avoid operational problem

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Example

( example from Hubspot)
Let’s say our supplement company has a goal of selling 750 total units, 500 units of multivitamins and 250 units of protein powder, during a sales period. During this period, the company actually sells 1000 total units, consisting of 700 units of multivitamins and 300 units of protein powder.

The actual sales mix percentage for each product is as follows:

700 units of multivitamins / 1000 actual total units sold = 70%
300 units of protein powder / 1000 actual total units sold = 30%

The budgeted sales mix percentage for each product is as follows:

500 budgeted units of multivitamins / 750 budgeted total units sold = 66.7%
250 budgeted units of protein powder / 750 budgeted total units sold = 33.3%

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Video

Visualization(click to expand)

Source and advanced materials

https://blog.hubspot.com/sales/sales-mix

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Sales mix

Definition

Example

Source and advanced materials

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